Presentation by Christopher Terry

Trading in commodities and/or securities may not be suitable for all individuals.
Consult your broker or other professional to determine your suitability. The
discussions provided by Christopher Terry are for educational purposes only and
should not be taken as a recommendation to buy or sell the referenced security.
Past performance is not indicative of future results.

© 2008 All information presented is property of Christopher Terry and the

LBRgroup.com. Charts provided by Tradestation.com

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My Top Trading Patterns

€ First Cross Buy & Sell

€ Buy & Sell Divergences
€ Power Buy & Sell

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The First Cross Trade
The First Cross Buy –
€ This is a pullback that most often the first higher low is
formed after a base or consolidation period. The “slow” line,
or 16 MA of the 3/10 oscillator crosses ABOVE the zero line
for the first time. The “fast” line or 3/10 oscillator pulls back
below zero as the price forms a higher low. First Cross
refers to the fast that it is the first pullback in price after the
“slow "line has crossed from below zero to above zero.
€ Reverse is true for a First Cross Sell.

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Divergence
Sell Divergence Trade –
€ We look for buy and sell divergences using the 3/10
oscillator. The best ones occur when the move is extended
along the Keltner Channels ( 2.50 ATR around 20 ema).
€ We also like to see the oscillator stay BELOW the zero line
as the divergence is forming.
€ A divergence does not necessarily imply a trend reversal.
Thus, we look for a retracement back to the 20-period EMA
as the minimum objective.

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Divergence
Sell Divergence Trade –
€ Price makes higher high, 3/10 oscillator makes lower high,
there is also a type of divergence when price makes
Three Pushes up, and 3/10 oscillator makes lower highs
to the price highs.
€ Risk point for Sell divergence is just above the swing high
once price turns.
€ Pattern works best when the “slow” line also forming a
divergence.
€ Reverse is true for a Buy Divergence.

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Power Buy/Sell
Power Buy –

€ This setup is formed by a combination of two time

frames.
€ A two part corrective wave down on the shorter
time frame occurs within the context of a bull flag on
the higher time frame.
€ Power Buy is triggered when price trades below the
prior swing low on the short time frame.

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Power Buy/Sell

Power Buy –

€ This creates fuel for the fire when the market then
reverses to the upside as the trend on the higher
time frame kicks back in.
€ The higher time frame 20 exponential moving
average acts as support.
€ Reverse is true for Power Sale

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 THANK YOU!

Go to www.LBRgroup.com for more information.

Email: Chris@LBRgroup.com

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